2015 Q2 Form 10-Q Financial Statement

#000155335015000423 Filed on May 08, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2015 Q1 2014 Q4
Revenue $48.10K $310.1K
YoY Change -80.9% 45.33%
Cost Of Revenue $270.0K $188.1K
YoY Change 50.07% 17.67%
Gross Profit $100.1K $122.0K
YoY Change 39.32% 127.94%
Gross Profit Margin 208.19% 39.34%
Selling, General & Admin $487.5K $455.7K
YoY Change 2.15% 10.4%
% of Gross Profit 486.8% 373.64%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $3.421K $3.336K
YoY Change 29.3%
% of Gross Profit 3.42% 2.74%
Operating Expenses $487.5K $455.7K
YoY Change 2.15% 10.4%
Operating Profit -$387.3K -$333.8K
YoY Change -4.44% -7.1%
Interest Expense $446.00 $0.00
YoY Change
% of Operating Profit
Other Income/Expense, Net -$441.00
YoY Change -3250.0%
Pretax Income -$387.8K -$333.8K
YoY Change -4.33% -7.1%
Income Tax
% Of Pretax Income
Net Earnings -$387.8K -$334.2K
YoY Change -4.33% -6.97%
Net Earnings / Revenue -806.2% -107.78%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.01 -$0.01
COMMON SHARES
Basic Shares Outstanding 33.90M shares 33.76M shares 32.80M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q2 2015 Q1 2014 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $290.0K $440.0K
YoY Change
Cash & Equivalents $289.4K $437.1K $590.2K
Short-Term Investments
Other Short-Term Assets $60.00K $80.00K
YoY Change
Inventory $996.2K $916.6K $776.4K
Prepaid Expenses
Receivables $13.32K $4.957K $4.110K
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.361M $1.436M $1.457M
YoY Change 19.28% 52.27% -3.42%
LONG-TERM ASSETS
Property, Plant & Equipment $38.59K $41.13K $38.07K
YoY Change 5.19% 14.45% 10.36%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $13.05K $12.58K $12.58K
YoY Change -11.24% -14.42% -14.42%
Total Long-Term Assets $848.2K $796.1K $493.9K
YoY Change 115.57% 113.89% 435.99%
TOTAL ASSETS
Total Short-Term Assets $1.361M $1.436M $1.457M
Total Long-Term Assets $848.2K $796.1K $493.9K
Total Assets $2.210M $2.232M $1.951M
YoY Change 43.97% 69.71% 21.87%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $277.1K $281.7K $270.3K
YoY Change 57.22% 68.05% 47.82%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $30.00K
YoY Change
Total Short-Term Liabilities $280.0K $310.0K
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $280.0K $310.0K
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $279.8K $306.7K $318.2K
YoY Change 55.9% 67.99% 51.63%
SHAREHOLDERS EQUITY
Retained Earnings -$5.207M -$4.819M -$4.485M
YoY Change 39.27% 44.57% 50.79%
Common Stock $7.087M $6.695M $6.076M
YoY Change 39.77% 50.72% 39.92%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.501K $2.501K $2.501K
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 360.0K shares 360.0K shares 360.0K shares
Shareholders Equity $1.930M $1.925M $1.633M
YoY Change
Total Liabilities & Shareholders Equity $2.210M $2.232M $1.951M
YoY Change 43.97% 69.71% 21.87%

Cashflow Statement

Concept 2015 Q2 2015 Q1 2014 Q4
OPERATING ACTIVITIES
Net Income -$387.8K -$334.2K
YoY Change -4.33% -6.97%
Depreciation, Depletion And Amortization $3.421K $3.336K
YoY Change 29.3%
Cash From Operating Activities -$370.0K -$420.9K
YoY Change -3.19%
INVESTING ACTIVITIES
Capital Expenditures -$100.0K $6.388K
YoY Change 59.06%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$100.0K -$59.39K
YoY Change -80.47%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net $22.82K
YoY Change 90.18%
Cash From Financing Activities 310.0K $327.2K
YoY Change 419.34%
NET CHANGE
Cash From Operating Activities -370.0K -$420.9K
Cash From Investing Activities -100.0K -$59.39K
Cash From Financing Activities 310.0K $327.2K
Net Change In Cash -160.0K -$153.1K
YoY Change -77.34%
FREE CASH FLOW
Cash From Operating Activities -$370.0K -$420.9K
Capital Expenditures -$100.0K $6.388K
Free Cash Flow -$270.0K -$427.3K
YoY Change -2.62%

Facts In Submission

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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="line-height: 11pt; margin-top: 0px; margin-bottom: 8.867px; font-family: 'times new roman';"><font style="font-size: 10pt;"><b>Organization and Nature of Operations</b></font></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">Bright Mountain Acquisition Corporation and subsidiaries, formerly known as Bright Mountain Holdings, Inc., and subsidiaries ("BMAQ" or the "Company," "we," "us," "our", "Bright Mountain") is a Florida corporation formed on May 20, 2010. Its wholly owned subsidiaries, Bright Mountain LLC, and The Bright Insurance Agency, LLC, were formed as Florida limited liability companies in May 2011.</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">The Bright Insurance Agency, LLC was formerly known as Five Peaks, LLC. On September 25, 2013 Five Peaks, LLC filed Articles of Amendment to the Articles of Organization with the State of Florida to amend its entity name to The Bright Insurance Agency, LLC.</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">The Company is a media and Internet company, which sells various products through our websites and third party portals such as Amazon.com and Ebay.com and provides content to attract and retain Internet audiences.</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">The Company's revenue consists principally of product sales and advertising revenue, which is generated primarily through the display of paid listings as well as display advertisements appearing on its websites.</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">The Company obtained approximately <font>44</font>% of its advertising revenue for the three months ended March 31, 2015 from a third-party provider, namely Google AdSense. Paid listings are priced on a price per click basis and when a user submits a search query and then clicks on a Google AdSense paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with the Company. The Company's remaining <font>56</font>% of advertising revenue was from direct advertising and subscriptions.</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">Bright Mountain plans to grow its business through organic growth and acquisitions. The Bright Mountain strategy is to concentrate its marketing and development primarily to military and public safety audiences.</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <p style="line-height: 11pt; margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">Our websites contain a number of sections with a vast amount of demographically oriented information including originally written news content, blogs, forums, career information, and video. Bright Mountain Acquisition Corporation's websites are:</font></p> <p style="line-height: 8pt; margin: 0px; font-family: 'times new roman';"><br/></p> <div class="CursorPointer"> <table style="margin-top: 0px; font-size: 10pt; width: 100%;" cellpadding="0" cellspacing="0"> <tr style="font-size: 0;"> <td style="vertical-align: top; text-align: left;" width="80"></td> <td style="vertical-align: top; text-align: left;"></td> </tr> <tr> <td style="margin-top: 0px;" width="80"> <p style="margin: 0px; text-indent: 48px; font-family: Symbol;"><font style="font-size: 10pt;">&#149;</font></p> </td> <td style="margin-top: 0px;"> <p style="margin: 0px; font-family: 'times new roman';"><font style="font-size: 10pt;">Bootcamp4me.com;</font></p> </td> </tr> <tr> <td style="margin-top: 0px;" width="80"> <p style="margin: 0px; text-indent: 48px; font-family: Symbol;"><font style="font-size: 10pt;">&#149;</font></p> </td> <td style="margin-top: 0px;"> <p style="margin: 0px; font-family: 'times new roman';"><font style="font-size: 10pt;">Bootcamp4me.org;</font></p> </td> </tr> <tr> <td style="margin-top: 0px;" width="80"> <p style="margin: 0px; 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CY2015Q1 us-gaap Use Of Estimates
UseOfEstimates
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="margin: 0px; font-family: 'times new roman';"><font style="font-size: 10pt;"><b>Use of Estimates</b></font></p> <p style="margin: 0px; font-family: 'times new roman';"><br/></p> <p style="margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">Our condensed consolidated financial statements are prepared in accordance with Accounting Principles Generally Accepted in the United States ("GAAP"). These accounting principles require management to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of our consolidated financial statements as well as reported amounts of revenue and expenses during the periods presented. Our consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. Significant estimates included in the accompanying consolidated financial statements include the fair value of acquired assets for purchase price allocation in business combinations, valuation of inventory, valuation of intangible assets, estimates of amortization period for intangible assets, estimates of depreciation period for fixed assets, valuation of equity based transactions, and the valuation allowance on deferred tax assets.</font></p> </div>
CY2014Q4 us-gaap Other Prepaid Expense Current
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CY2015Q1 us-gaap Revenue Recognition Sales Returns
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="margin: 0px; font-family: 'times new roman';"><font style="font-size: 10pt;"><b>Sales Return Reserve Policy</b></font></p> <p style="margin: 0px; font-family: 'times new roman';"><br/></p> <p style="margin: 0px; text-indent: 48px; font-family: 'times new roman';"><font style="font-size: 10pt;">Our return policy generally allows our end users to return purchased products for refund or in exchange for new products. We estimate a reserve for sales returns, if any, and record that reserve amount as a reduction of sales and as a sales return reserve liability. Sales to consumers on our web site generally may be returned within a reasonable period of time.</font></p> </div>
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0.56 pure
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TermOfSubscriptionsMinimum
P1M
CY2015Q1 us-gaap Advertising Expense
AdvertisingExpense
8234 USD
CY2014Q1 us-gaap Advertising Expense
AdvertisingExpense
19246 USD
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PropertyPlantAndEquipmentCostCapitalization1
500 USD
CY2015Q1 us-gaap Number Of Operating Segments
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P12M
CY2015Q1 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 USD
CY2014Q1 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 USD
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PercentageOfAdvertisingRevenueObtainedFromThirdPartyServiceProvider
0.44 pure
CY2015Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
78519 USD
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CY2015Q1 us-gaap Supplies
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520 USD
CY2014Q4 us-gaap Supplies
Supplies
585 USD
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PrepaidInsurance
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PrepaidInsurance
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PropertyPlantAndEquipmentGross
72131 USD
CY2015Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
37393 USD
CY2014Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
34057 USD
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349983 USD
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1011100 shares
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
0.20
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
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0.31
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1011100 shares
CY2015Q1 us-gaap Operating Income Loss
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-333769 USD
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
0.75
CY2015Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
CY2015Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Exercise Price1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1
0.20
CY2015Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 item
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73246 USD
CY2015Q1 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
100482 USD
CY2015Q1 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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103673 USD
CY2015Q1 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
24137 USD
CY2014Q1 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
17830 USD
CY2015Q1 us-gaap Stock Dividends Shares
StockDividendsShares
289425 shares
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P6Y3M
CY2014Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y3M
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CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.0001 pure
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ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions
1605000 shares
CY2015Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P7Y3M18D
CY2015Q1 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
CY2015Q1 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q1
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
40000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1605000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
0.31
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
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CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0.00 pure
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0.00 pure
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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRate
0.00 pure
CY2015Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
13734 USD
CY2015Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
87481 USD
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
0.43
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1565000 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
0.31
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y3M18D
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
349983 USD
CY2015Q1 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
250000 USD
CY2015Q1 us-gaap Cash Uninsured Amount
CashUninsuredAmount
74153 USD
CY2014Q4 us-gaap Cash Uninsured Amount
CashUninsuredAmount
173933 USD
CY2015Q1 dei Amendment Flag
AmendmentFlag
false
CY2015Q1 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2015Q1 dei Document Period End Date
DocumentPeriodEndDate
2015-03-31
CY2015Q1 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2015Q1 dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
CY2015Q1 dei Entity Registrant Name
EntityRegistrantName
Bright Mountain Acquisition Corp
CY2015Q1 dei Entity Central Index Key
EntityCentralIndexKey
0001568385
CY2015Q1 dei Document Type
DocumentType
10-Q

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